Stirling Hospitality Advisors, a number one boutique advisory agency within the area, has launched the fourth version of the RAK Funding Pulse report, highlighting the speedy development of Ras Al Khaimah’s hospitality and actual property sectors. The newest analysis showcases the Emirate’s rising tourism sector, which has seen a strong enhance in customer numbers, a quickly evolving resort pipeline, and the emergence of branded residences as a key funding asset.
With tourism at an all-time excessive, Ras Al Khaimah’s resort sector is poised for important growth. By 2027, the Emirate’s whole resort stock is predicted to greater than double, with 7,537 new rooms added to the prevailing 7,144, bringing the whole to over 14,600. Notably, 71% of this pipeline falls throughout the five-star class, additional cementing RAK’s standing as a premier luxurious hospitality vacation spot.
The Emirate is ready to welcome over 15 worldwide resort operators throughout all segments, from luxurious to midscale. New entrants reminiscent of Wynn, Millennium, Radisson Purple, Ushuaïa, and Rove Al Marjan underscore RAK’s rising and diversified hospitality panorama. Offering beneficial insights into market efficiency, provide tendencies, and funding alternatives, the report additionally highlights a shift in market management amongst resort operators, with Accor surpassing Hilton in 2024 as a result of strategic rebranding initiatives. This transition was fueled by the conversion of Al Marjan Resort into Pullman and the rebranding of Hilton Seashore Resort into Rixos Al Mairid, reflecting the Emirate’s dynamic hospitality panorama and dedication to delivering world-class visitor experiences. In the meantime, Marriott is quickly catching up – the operator at present has the most important pipeline in RAK with main developments like The Westin, W Al Marjan, and JW Marriott Al Marjan all scheduled to open by 2027.
Commenting on the report’s findings, Tatiana Veller, Managing Director of Stirling Hospitality Advisors, stated: “Ras Al Khaimah’s hospitality sector is present process a exceptional transformation. The mixture of sturdy authorities help, bold improvement plans, and the arrival of world resort manufacturers and traders is setting the stage for a brand new period of development. Our newest version of RAK Funding Pulse offers invaluable insights into these shifting dynamics, providing traders, operators, and builders a complete information to the alternatives that lie forward.”
The report additionally highlights the speedy growth of branded residences, a section gaining momentum in RAK’s actual property market. Whereas the Emirate at present has no operational branded residences, 16 initiatives are in improvement, set to introduce roughly 5,600 items by 2029. The bulk (63%) of those initiatives are targeting Al Marjan Island, with the remainder distributed throughout Al Hamra, Mina Al Arab, and the newly established Seashore District. This surge is fueled by the entry of notable international manufacturers reminiscent of Waldorf Astoria, JW Marriott Residences, Nobu, Nikki Seashore, and Ritz-Carlton, in addition to a number of high-end style and life-style manufacturers, reinforcing RAK’s place as an rising luxurious funding hub.
Ras Al Khaimah’s tourism momentum continues to develop with no indicators of slowing down. The Emirate welcomed 1.28 million in a single day guests in 2024, marking a 5.1% year-on-year enhance. Worldwide guests accounted for 76% of whole visitor nights, with development stabilising at 4.3% following a pointy 24% surge in 2023. Regardless of this adjustment, Ras Al Khaimah is on monitor to exceed preliminary projections, with customer numbers anticipated to achieve 3.5 million by 2030, reflecting a strong compound annual development fee of 19%. This sustained demand has led to a 14% rise within the Common Every day Price (ADR), pushing RevPAR to AED 421. Whereas occupancy charges adjusted barely with a 2.4% year-on-year dip, this means a strategic shift in the direction of attracting premium guests over high-volume tourism.
Moreover, the much-anticipated opening of Wynn Al Marjan Island in 2027, the area’s first totally built-in resort, is ready to be a transformative milestone for Ras Al Khaimah’s hospitality sector. Anticipated to draw high-net-worth travellers, the resort is not going to solely enhance demand but in addition reshape the visitor profile. Because of this, the typical variety of visitors per resort room (double occupancy issue) is projected to shift from a typical household resort stage of two.5 to a extra mature, luxury-driven vary of 1.75–1.85. These dynamics are set to drive annual room night time demand from 2.41 million to 4.28 million by 2027. Wynn’s presence is not going to solely elevate the Emirate’s international enchantment but in addition reinforce its place as a number one participant within the luxurious hospitality market.
Wanting forward, the report highlights important funding alternatives throughout varied sectors in Ras Al Khaimah. Whereas luxurious properties stay dominant, there’s a clear undersupply within the midscale, and higher midscale value segments, in addition to extended-stay provide, presenting sturdy potential for traders in serviced flats, life-style resorts, and family-friendly resorts. Moreover, sectors reminiscent of residential, retail, F&B, employees lodging, schooling, and healthcare are additionally primed for development, additional enhancing RAK’s increasing tourism ecosystem.
With provide and demand anticipated to stay balanced till 2025, further resort stock can be wanted from 2026 onwards to maintain tempo with rising customer numbers. Forecasts point out the Emirate may comfortably accommodate a further 8,500 resort rooms by 2030, reinforcing its long-term development potential and attractiveness to traders.
As a subsidiary of Ras Al Khaimah (RAK) Hospitality Holding, Stirling Hospitality Advisors asset-manages over 3,500 resort rooms throughout a number of markets and oversees a USD 1.25 billion hospitality and resort portfolio.
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